Utilization Question

Anonymous · ‎10-01-2016

Hi. I have worked very hard to get my credit right. I have about 10000 in balances across 3 cards (zero interest) and almost $135000 in avail credit. My current FICO, according to Cap 1 website, is 710. I played with the simulator, as I have to fix both of our cars and finish fixing up our house, and by adding over $5000 to my balances my score will drop almost 75 points. Again, I am not paying interest and will not have to. However, should I be worried about this drop in my FICO? (of course I don't want it to drop that much, but I need to get things done and that's what this credit is for.) I have zero plans for additional cards in the future. Thanks.

Anonymous · ‎10-01-2016

@Anonymous wrote:
Hi. I have worked very hard to get my credit right. I have about 10000 in balances across 3 cards (zero interest) and almost $135000 in avail credit. My current FICO, according to Cap 1 website, is 710. I played with the simulator, as I have to fix both of our cars and finish fixing up our house, and by adding over $5000 to my balances my score will drop almost 75 points. Again, I am not paying interest and will not have to. However, should I be worried about this drop in my FICO? (of course I don't want it to drop that much, but I need to get things done and that's what this credit is for.) I have zero plans for additional cards in the future. Thanks.

First off, you arent playing with a FICO simulator, its a FAKO simulator. CapOne does NOT provide a FICO score, it's a Vantage score, which seems to be much more sensitive to new accounts than FICO is. you shouldnt see THAT much of a score drop if you add $5K in utilization, unless your cards are low limits..

Anonymous · ‎10-01-2016

First, thanks for replying. I have a Marvel card at 25K (but it has zero balance and I don't trust it b/c of the other postings on here), a Discover at 21K, Chase Marriott at 19K, and others at/around 10K. I didn't understand why adding more to my balances would drop my scores 70+ points, but I was unaware that Cap 1 simulator was a FAKO. This is some relief.

SouthJamaica · ‎10-01-2016

@Anonymous wrote:
Hi. I have worked very hard to get my credit right. I have about 10000 in balances across 3 cards (zero interest) and almost $135000 in avail credit. My current FICO, according to Cap 1 website, is 710. I played with the simulator, as I have to fix both of our cars and finish fixing up our house, and by adding over $5000 to my balances my score will drop almost 75 points. Again, I am not paying interest and will not have to. However, should I be worried about this drop in my FICO? (of course I don't want it to drop that much, but I need to get things done and that's what this credit is for.) I have zero plans for additional cards in the future. Thanks.

1. Capital One doesn't supply a FICO score, it supplies a Vantage 3.0 score, which is often very different.

2. All of the simulators are often wildly off base, and not meaningful.

3. The best way to optimize your utilization is: (a) have more than half of your cards report at zero; (b) let the other cards report at less than 10%.

Unify FCU Platinum Visa Variable Rate 35k

TD Bank Business Solutions Visa (Bus) 25k

FNBO Evergreen Business Edition Visa (Bus) 20k

Liberty (formerly Evansville Teachers) FCU Platinum Prime Plus MC 15k

US Bank Triple Cash Rewards Visa (Bus) 12k

Geo-fenced credit union Platinum Visa 10500

Members 1st FCU Low Rate Platinum Visa 5k

PLOC: Langley FCU 40k; Penfed CU 15k; NFCU 15k; Teachers FCU 15k; Affinity FCU 10k. BLOC: NFCU 5k

Total revolving limits 569520 (505320 reporting) FICO 8: EQ 699 TU 696 EX 682

surferchris · ‎10-01-2016

@SouthJamaica wrote:
@Anonymous wrote:
Hi. I have worked very hard to get my credit right. I have about 10000 in balances across 3 cards (zero interest) and almost $135000 in avail credit. My current FICO, according to Cap 1 website, is 710. I played with the simulator, as I have to fix both of our cars and finish fixing up our house, and by adding over $5000 to my balances my score will drop almost 75 points. Again, I am not paying interest and will not have to. However, should I be worried about this drop in my FICO? (of course I don't want it to drop that much, but I need to get things done and that's what this credit is for.) I have zero plans for additional cards in the future. Thanks.
1. Capital One doesn't supply a FICO score, it supplies a Vantage 3.0 score, which is often very different.

2. All of the simulators are often wildly off base, and not meaningful.

3. The best way to optimize your utilization is: (a) have more than half of your cards report at zero; (b) let the other cards report at less than 10%.

Agreed, good advice.

Current Cards:
AmEx Hilton Honors Surpass//AmEx Platinum Card//Ann Taylor Rewards Mastercard//Capital One Platinum Card//Credit One AmEx//Credit One Platinum VISA//Fingerhut//Navy More Rewards AmEx//TruWest Platinum VISA//Aspire VISA//Costco Anywhere VISA//Lowes Advantage//Apple Card
Loans:
1 Mortgage/////Navy FCU Auto Loan (2020 Jaguar I-Pace)//Capital One Auto (2016 BMW i3)
Next Cards (4th QTR 2022):
Navy Flagship Rewards VISA//Chase Sapphire Preferred
Stats:
Scores: 700's // Inq's: 1 for mortgage // Util: 1% // AoOA: 21 yrs

Anonymous · ‎10-01-2016

Simulators are garbage. Never trust them.

You won't drop 70+ points, that's absurd. Perfect example of how off similators can be.

You'd be taking your aggregate utilization from 7% to 11% give or take. AT MOST I could see this impacting a profile maybe 10 points... perhaps 20 if it was a very thin file which I doubt based on your overall limits. 70 is laugable.